The PN's spokesperson for economy Jerome Caruana Cilia said that Budget 2025 was 'yet another missed opportunity,' where the government made no serious effort to tackle the pressing issues hindering the economy and affecting citizens' daily lives.

Speaking to The Malta Independent, Caruana Cilia said that while there are some positive measures in the Budget announced last Monday, including initiatives long advocated by the PN and other stakeholders, "they fall short of compensating for the overall lack of ambition in this budget."

"Instead of providing a clear plan for Malta's future, this budget appears to be aimed primarily at securing the Prime Minister's immediate political survival. What Malta needs, however, is a government willing to confront our real challenges with long-term solutions," Caruana Cilia said.

He said that Budget 2025 does not address the rising cost of living, unplanned overpopulation, lengthy delays at hospitals, neglected infrastructure, constant traffic congestion, and escalating environmental degradation.

"These are the very challenges we must address if we are to progress as a country. Instead, this budget lacks vision, direction, and solutions," Caruana Cilia said.

He quoted two recent business surveys, the EY Attractiveness Survey among larger investors and the SME Barometer among smaller firms, which highlight these issues clearly.

Caruana Cilia continued that citizens have also spoken loudly in recent polls, yet rather than address these concerns, the Budget merely promises more strategic plans in the future, with no concrete solutions for the already identified problems.

Asked if government is truly shifting from quantity to quality, Caruana Cilia said that unsurprisingly, the PN and many other stakeholders, including social partners, are "highly sceptical of the government's theme of shifting 'from quantity to quality' in this Budget."

"For over a decade, we have warned that the government's relentless pursuit of growth by inflating the population and prioritising low-cost labour over high-value jobs is unsustainable and damaging," Caruana Cilia said.

He said that 'Quality over quantity' has been the PN's mantra for years, yet time and again, the government dismissed its concerns-only to now make an abrupt turnaround.

"Even the slogan 'Towards a Country of Quality' is an implicit admission of how far we are from that goal," Caruana Cilia pointed out.

He said that adjusting course as circumstances change is understandable, but true commitment to quality would include a serious action plan.

However, Caruana Cilia said that this budget offers little evidence that the government is genuinely moving in this direction.

He said that in 2021, the government presented a Vision for 2031, and more recently, Energy Minister Miriam Dalli introduced her Vision for 2050.

"Now, we are told to expect yet another 2050 Vision next year. We are ready to support it with our ideas, but by now, we should be discussing the performance of the vision launched three years ago, reviewing and adjusting its milestones rather than starting a new one from scratch," Caruana Cilia said.

He said that scepticism is grounded in experience, as the public has heard of promises of medical tourism, Blockchain Island, a new metro system, and many other grand ideas that never saw the light of day.

"How can we believe that this new Vision will be implemented when the government cannot even maintain a green wall? Everyone will be holding government accountable to ensure that such vision is implemented following a genuine consultation period," Caruana Cilia said.

He explained that this is why the government that created these problems is not the one to solve them.

"The PN will continue to push for policies that genuinely enhance the quality of life and economic value for all citizens. This is the party that transformed the economy earlier this decade, attracting new sectors that remain the backbone of our economy today," Caruana Cilia said.

Asked about government's proclaimed "historic move" in its tax cut measure, Caruana Cilia said that while a tax cut is indeed one of the positive initiatives in this budget, there is still much more to be done.

He said the PN has long advocated for more substantial cuts to ease the burden on families amid years of high inflation.

"Yes, a few extra euros per week are helpful, but real productivity gains will not come from basic tax relief alone," Caruana Cilia said.

"How can we expect productivity to thrive when traffic congestion worsens daily, unplanned and disruptive roadworks persist, power outages remain frequent, and government bureaucracy continues to grow, compounded by the endless court delays that hinder business?" he questioned.

Caruana Cilia said that these ongoing issues are the real obstacles impacting both businesses and citizens alike.

He condemned the government's disregard for basic principles of good governance, which has placed the country in a negative spotlight in recent years.

"In the end, this tax cut may provide temporary relief, but without addressing these deeper challenges, next year's budget will find us grappling with the same problems - if not facing even greater frustrations," Caruana Cilia said.

Asked about the country's deficit and debt, and how government says that the deficit is below the EU threshold, as well as going down at a faster rate, while the PN says both debt and deficit are doing terribly, Caruana Cilia said that first, one must focus on the facts.

"Up until 2020, Malta's debt stood at €5 billion in terms of absolute numbers, accumulated over decades since Independence. In just four years, Prime Minister Robert Abela doubled that debt in terms of absolute numbers, and the government plans to add another approximately €2 billion in the next two years," he said.

Caruana Cilia continued that every single day, the country is paying more than €700,000 in interest on this debt. "This is not an opinion - these are crude facts," he said.

He said that while the government points to an improved deficit, the Budget itself concedes that Malta will remain under the EU's excessive debt procedure into next year.

Furthermore, Caruana Cilia said that while the government attempts to justify its spiralling debt by hiding behind percentages, it's worth noting that the NSO's recent GDP benchmarking exercise raised GDP figures, which lessened the debt ratio on paper.

"However, a deeper look at Malta's accounts shows a troubling shift: wages and salaries have been shrinking relative to profits in the national distribution of added value since 2013, with this gap only widening," he said.

Caruana Cilia said that during the past nine years, the average real growth in annual net earnings were below 1% for all household types.

"Eurostat figures show that in 2021 and 2023, real increase in wages contracted for all household as salary increases paid in these years were below the annual inflation rate," he said.

He said that if the analysis had to be extended to 2015, the reality for Maltese families did not improve much, as real salary increases during the period were close to just 0.6%.

"Mismanagement, as seen with the €400 million lost on the hospitals' fraudulent deal, has not brought value to taxpayers," Caruana Cilia said,

Additionally, Caruana Cilia said that this Budget offered no vision for new economic niches or strategies to diversify and strengthen Malta's economy against future shocks.

"Instead, it has left Malta's financial stability on shaky ground," Caruana Cilia said.